AIG makes $1.8 billion sale

T&D Holdings has partnered with a newly created fund by The Carlyle Group to acquire a 76.6% ownership interest in Fortitude Group Holdings for about $1.8 billion from AIG. Fortitude Group Holdings’ group companies operate as Fortitude Re. A release said that after the transaction closes sometime in mid-2020 (subject to required regulatory approvals and other customary closing conditions), ownership interests in Fortitude Re will include Carlyle and its fund investors at 71.5%, T&D at 25%, and AIG at 3.5%. AIG will receive a $500 million non-pro-rata distribution, which, if not fulfilled by May 13, 2020 or transaction close, will result in an additional payment from both the Carlyle fund and T&D based on their respective ownership interest in Fortitude Re. Carlyle had previously acquired a 19.9% stake in Fortitude Re in November 2018.

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